October 12, 2009 – 2:19 pm
First order take rates tell us about the relative popularity of different options. For example, consider a small set of possible pizza toppings.
Topping
Take Rate
Pepperoni
40%
Mushrooms
20%
Pineapple
3%
Canadian Bacon
3%
Green Peppers
10%
Customer buying patterns really start with second order take rates, which tell us about pairs of options, or toppings. Second order take rates tell us about relative [...]
By Roy Marsten
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Posted in Uncategorized
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Also tagged analytics, attach rate, business analytics, choice combinations, customer fulfillment, online marketing analytics, patterns, product complexity, product management, product mix, sales analytics
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August 27, 2009 – 3:25 pm
If a product is too complex, where is the complexity coming from? Which features are causing the explosion in the number of build combinations? The stairway to complexity tells us where to look.
The stairway to complexity shows how the number of unique configurations drops as features are removed. Here is another stairway for a [...]
August 20, 2009 – 4:55 pm
Self service is a term we all know, such as pay-at-the-pump gas and self-checkout stations at some grocery stores, and now more obscure things like video game kiosks by GameFly, but the true tidal wave of self-service hasn’t even started, and it’s going to be good for both the consumer and the manufacturer, if done [...]
By Russ Caldwell
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Posted in Uncategorized
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Also tagged choice combinations, complexity, configurable product, configurator, cross sell, customers, margin, POS data, predictive analytics, price, profit, Self Service, SKU, suggestive selling, upsell
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Every five or so years, I shop for a new car. I hate car shopping. The haggling, the long trips to dealerships way outside of town, the hours and hours of waiting, punctuated by furtive whispers to my husband, “Don’t give in! Stick to our budget! But don’t tell them our budget!” and similar. But [...]
By Loraine Fick
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Posted in Uncategorized
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Also tagged analytics, customer, demand driven, margin, price, product mix, sales, sales data, sales history, salesperson, self serve, Self Service, shopping, value
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In today’s post, we talk to Mark Gottfredson about product complexity and customer choice.
Emcien: It’s natural for companies to add products and features to keep customers happy. What are the downfalls?
MG: The challenge of adding complexity is it’s the most natural thing in the world. Marketing comes up with new ideas for products or configurations [...]
By Loraine Fick
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Posted in Uncategorized
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Also tagged choice combinations, commerce, complexity, credit cards, customers, forecasting, marketing, product management, product mix, product segment, sales, sku rationalization
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Advances in interconnection technologies are driving an increasingly demand-driven market. Customers are learning to expect to get what they want, when they want it, how they want it. And they tell you in each and every interaction they have with your company, or not. In a demand-driven world, increasing product variation and complexity in your [...]
By Kathy Chiang
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Posted in Uncategorized
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Also tagged algorithm, analytics, choice combinations, clusters, complexity, cross sell, customer fulfillment, customers, data mining, demand, demand driven, intelligent, margin, margins, markets, Pareto, POS data, predictive analytics, product mix, revenue, suggestive selling, upsell, variants, variation
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In a previous post, I discussed two types of sales history: raw and collapsed. The collapsed sales history can be displayed in a table or spreadsheet, with a special column for volume. If this table is sorted on decreasing volume, then the most popular configurations (popcons) will be at the top. The graph with the [...]
A product is a collection of features, and each feature has alternative options. Understanding features helps determine strategies such as late staging. Some features are tangible, material things about the product: which engine, how much memory, Bluetooth. Other features are abstract or soft, like geographic region or sales channel. Among tangible features, distinctions can be [...]
By Roy Marsten
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Posted in Uncategorized
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Also tagged algorithm, analytics, choice combinations, customers, demand, demand driven, features, margin, options, orders, POS data
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One of the most important components in choice complexity is the product configuration itself, the mixture of product options that give a product its unique signature. Obviously the typical product orderable options are needed to analyze the complexity of a product, but other more abstract options can offer surprising insights into product and customer behaviors.
A [...]
By Mike Merrill
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Posted in Uncategorized
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Also tagged algorithm, analytics, attribute, attribution, choice combinations, complexity, configuration, customer fulfillment, customers, demand driven, demand shaping, margin, options, product, product extension, product mix, quality, sales mix, trends
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In any manufacturing company that builds configurable products, there is a lot of discussion around what product complexity is. What’s interesting is that when times are good and there are lots of sales, the discussion is usually around how to simplify or streamline with the goal to sell more product even faster, that complexity is [...]
By Russ Caldwell
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Posted in Uncategorized
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Also tagged choice combinations, cross sell, customer fulfillment, finished goods, forecasting, inventory, manufacturing, POS data, predictive analytics, product, product management, product mix, profit, quality, recommendation engine, sku rationalization, sku reduction, suggestive selling, supply chain, upsell
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